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MANILA – Businesses remain optimistic with the country’s economic growth for this year, according to the First Semester Executive Outlook Survey for 2017 of the Makati Business Club (MBC) released on Tuesday.

The MBC survey had 83 percent of the respondent companies saying the country will either surpass or sustain this year the 6.8-percent gross domestic product (GDP) growth in 2016; while only 17 percent projected GDP this year to be lower than the previous year.

On other economic indicators, MBC member companies forecast higher inflation rate, higher 91-day Treasury bill rate, weaker peso, lower approved investments, lower exports revenues, and a slowing down of imports receipts.

Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said Tuesday the Philippines is on track to extend the 72 consecutive quarters of economic growth as macroeconomic fundamentals remain strong.

“Barring external shocks, we are on track to extend that streak [of 72 consecutive quarters of economic growth],” Tetangco said in a speech during the Management Association of the Philippines general membership meeting in Makati City.

Tetangco, however, said external challenges continued to threaten the economy, including the recent rate hike by the US Federal Reserve. “The prospects of higher interest rates in advanced economies may cause outflows in emerging market economies, including the Philippines. The Philippines has actually seen capital reversals as early as last year,” Tetangco said.

Business remains optimistic on this year’s prospects both on the macroeconomic and corporate front, pushing companies to make additional investments and hire more people in 2017.

Results of the first semester 2017 Executive Outlook Survey of the Makati Business Club (MBC) show a little less than half of the respondents see the gross domestic product this year to be the same as last year’s 6.8 percent, while 34 percent see it higher than last year’s even as members anticipate higher inflation and interest rates this year, coupled with a critical outlook on trade.

Such positive outlook cascades in the corporate front with a large majority of the respondents projecting an increase in both gross revenues and net income in the coming year.

Only 17 percent of the respondents project a lower economic growth rate.

A high majority of 85 percent expect the country’s headline inflation in 2017 to be higher than last year’s average rate of 1.8 percent.

SENIOR EXECUTIVES of some of the country’s biggest companies have a rosy outlook for the general economy and business prospects this year, according to results of the First Semester Executive Outlook Survey which the Makati Business Club e-mailed to journalists yesterday.

“The Makati Business Club (MBC) members expressed a highly optimistic outlook for the Philippine economy, expecting it to either surpass or sustain last year’s 6.8% GDP growth,” the MBC said in a statement on survey findings.